The re-sale value of a leasehold property in Finchley depends on how many years the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be concluded well before the 80 year threshold. Statute enables Finchley qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Finchley with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you better control over the value of your Finchley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the landlord of her ground floor apartment in Finchley, Aimee started the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work was finalised in July 2005. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were contacted by Dr Milo Peterson , who moved into a newly refurbished flat in Finchley in October 1997. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Finchley with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated in 2088. Given that there were 63 years left we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of legals.
An example of a Lease Extension case for a Finchley property is Ground Floor 110 Station Road in June 2013. The Tribunal found that the premium payable for a lease extension should be £31,665. This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 56.65 years.